Flexible Spending Accounts (FSA) Qualifying Expenses

A List of Eligible and Ineligible FSA Expenses

Certain over-the-counter (OTC) medical products restored as FSA qualified medical expenses.

The CARES Act recently passed by Congress restores the ability to use FSAs to purchase certain over the counter medical products, like Tylenol, Claritin and Pepto-Bismol, etc., without a doctor’s prescription. Additionally, menstrual care products are now considered qualified medical expenses for payment or reimbursement with an FSA. Learn more by visiting the Benefits News and Updates website.

Dependent Day Care FSA

words child care spelled in children's blocks

Eligible service providers include day care centers, babysitters, au pairs, or a relative over age 19 who is not claimed as an exemption on your federal income tax return.

Dependent care expenses, whether for a child or an elder, include any expenses that allow you to work, such as:

  • Before and after-school care
  • Babysitting fees
  • Day care services
  • In-home care/au pair services
  • Nursery and preschool
  • Summer day camps
  • Adult day care services

Examples of ineligible expenses:

  • School expenses for a child in kindergarten or higher
  • Healthcare expenses for your dependents
  • Summer school or tutoring expenses

For a complete list of eligible expenses for a Dependent Care FSA, see IRS Publication 503: Child and Dependent Care Expenses.

 

Health Care FSA

dollar bills rolled into a prescription bottle

Health expenses not covered by your insurance plan may be eligible for reimbursement using your Health Care FSA, including but not limited to:

  • Eligible health, prescription, dental and vision copays, deductible, and/or co-insurance
  • Prescription drugs or prescription drug copays
  • Deductibles
  • Contact lenses and eyeglasses
  • Braces
  • Out-of-pocket expenses paid to doctors, dentists, surgeons, chiropractors, osteopaths, psychiatrists, psychologists, and Christian Science practitioners
  • Out-of-pocket expenses for hospital services, nursing services, laboratory and x-ray services
  • Acupuncture treatments
  • Smoking-cessation programs and prescribed drugs to help nicotine withdrawal
  • Dentures, hearing aids, crutches, wheelchairs, and guide dogs for the blind or deaf
  • Fees in excess of reasonable and customary amounts allowed by your insurance

Examples of ineligible expenses:

  • Your health plan premiums, including COBRA premiums
  • Health club dues and treatments unrelated to a specific health problem
  • Cosmetic surgery
  • Costs for cosmetic dental procedures
  • Prescription drugs for cosmetic purposes
  • Dietary supplements and vitamins
  • Cosmetics, sunblock, and toiletries (e.g. toothpaste, lotions)

For a complete list of eligible expenses for a Health Care FSA, see IRS Publication 502: Medical and Dental Expenses.

HR Connection

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